Bajaj Finance, India's largest private sector non-banking financial company (NBFC), has launched a ₹11,700 crore qualified institutional placement (QIP) to raise fresh capital. The company has set an indicative issue price of ₹1,025 per share. This represents a 5% discount to its Wednesday closing price of ₹1,078.80 on the National Stock Exchange (NSE).

The indicative price is higher than the Securities and Exchange Board of India (Sebi) floor price of ₹992.25 per share. The final issue price will be determined in consultation with the book-running lead managers. The Bajaj Finance QIP will be open to eligible qualified institutional buyers (QIBs), including resident Indian investors and foreign portfolio investors (FPIs), subject to regulatory requirements.

Bajaj Finance's ₹17,500 Crore Fundraising Plan

The QIP is part of a larger fundraising plan approved by the company's board on October 1. The plan aims to raise up to ₹17,500 crore through two routes: a ₹11,700 crore QIP and a preferential issue of warrants worth ₹5,800 crore.

On November 10, Bajaj Finance allotted 57.43 million warrants to its promoter and holding company, Bajaj Finserv, at ₹1,010 apiece. The transaction aggregated approximately ₹5,800 crore.

Key Highlights:

• QIP size: Up to ₹11,700 crore ($1.25 billion).
• Indicative issue price: ₹1,025 per share, around 5% below Wednesday's closing price.
• Warrant allotment: 57.43 million warrants issued to Bajaj Finserv for approximately ₹5,800 crore.

The company could issue up to 114.1 million equity shares with a face value of ₹1 each through the placement. According to its preliminary placement document dated November 11, the proposed issuance could dilute up to 1.8% of its pre-issue paid-up equity capital of 6,225.95 million shares.

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How Will Bajaj Finance Use the QIP Proceeds?

The company will use the proceeds to repay deposits, loans, commercial papers (CPs) and non-convertible debentures (NCDs). It will also cover interest payments on these borrowings falling due after the equity share allotment. The remaining funds will go towards general corporate purposes.

The Bajaj Finance QIP will be managed by six book-running lead managers: Morgan Stanley India, Kotak Mahindra Capital, J P Morgan India, IIFL Capital Services, JM Financial and Axis Capital.

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Bajaj Finance has launched its Bajaj Finance QIP worth ₹11,700 crore ($1.25 billion) to raise fresh capital. India's largest private sector non-banking financial company (NBFC) has set an indicative issue price of ₹1,025 per share. This represents a 5% discount to its Wednesday closing price of ₹1,078.80 on the National Stock Exchange (NSE).